Fitness tax deduction

All citizens who are actively (and not very) involved in fitness and sports now have the opportunity to return part of the money for paid classes. The thing is that the President signed a new law “on the tax deduction for fitness”.

In this article I will tell you how it works, what kind of “discount” you can count on, who can get it and how to apply.

Table of contents:

How does the tax deduction work and how much money can you get?
Who can get a deduction?
Can I get a deduction for any classes and sections? Where can I see the complete list?
What documents to collect and how can I issue a deduction?
How does the tax deduction work and how much money can you get?
The personal income tax deduction is your right to receive a benefit by reducing the amount of income on which you pay income tax in the amount of 13%.

Imagine that you are working and your employer deducts 13% from your salary every month. Then, if you apply for a tax deduction, you can either receive a higher salary (due to the fact that the employer will withhold less tax from you) or you can receive the amount of previously paid tax.

There are several types of tax deductions in the Tax Code. The “new” fitness deduction is included in social deductions. Social deductions also include deductions for treatment, education, charity, etc.

I am talking about social deductions so that you know that you can only return a certain amount for fitness classes – no more than 15,600 rubles. in year. This is because social deductions (with some exceptions) have a total limit (restriction) of 120,000 rubles. But, I’ll say right away that to return 120,000 rubles. you will not be able to – this amount is not refundable, it is needed only for calculation. You are entitled to a refund in the amount of 13% of 120,000 rubles, that is, 15,600 rubles.

At the same time, there is one more limitation – it depends on the amount of tax that you paid for the year from your income (or the employer withheld from you if you work). Since you are recovering the previously paid tax on the deduction, you will not be able to return more than you paid.

Let’s take an example to make it clear.

Example

Eugene is employed and goes to the gym regularly. He paid 45,000 rubles for a subscription. Eugene can apply for a tax deduction for fitness and receive 13% of the funds spent, that is, 5850 rubles (13% * 45,000)

Evgeny’s neighbor Nikolai goes to the same gym with him, and he spent the same amount on a subscription. But, besides this, Nikolai paid for his son’s education (80,000 rubles) and bought medicines for his elderly mother (30,000 rubles). Nikolay will issue a social deduction for all expenses and then he will be able to receive 15,600 rubles (13% * 120,000). Despite the fact that Nikolai’s expenses amounted to 155,000 rubles. (45,000 + 80,000 + 30,000), the deduction has a limit of 120,000, and it is from this amount that the refund amount will be calculated.

Who can get a deduction?
To receive a fitness deduction (as with any other tax deduction) you must:

be a tax resident, that is, live in Russia for more than 183 days a year

pay income tax at a rate of 13% on their income. The calculation of the deduction for fitness will not include all income, but only received under employment contracts, GPC agreements, for the provision of services, the lease of property, the sale or receipt of a gift of property (except for securities), as well as pension insurance payments.

Can I get a deduction for any classes and sections? Where can I see the complete list?
I must say right away that not for any. The list of physical culture, sports and health services for which it will be possible to receive a deduction will be compiled by the Government. And the Ministry of Sports will make its own list of fitness clubs and sports facilities, for the purchase of a subscription in which you can get a tax refund. This list will include both companies and individual entrepreneurs providing sports and physical education services.

We will be able to see both lists only by the end of the year (to be more precise, by December 1), because it will be possible to draw up a “new” deduction only from the next 2022.

It is worth noting that it will be possible to include in the costs the payment for sports activities for their children and wards (but up to 18 years).

What documents to collect and how can I issue a deduction?
As I said at the very beginning of the article, the fitness deduction can be issued in two ways:
through the employer

through the tax office at the place of permanent registration

1) To receive a deduction through your employer, you need to take a copy of the contract for the provision of sports services and a cash receipt confirming their payment (or other similar document). Send (or take) these documents to the tax office, and in a month you will receive a special notification from the inspector about the right to deduct. Please forward this notice to the accounting department at work. And from next month, personal income tax will not be withheld from your salary.

2) To get a deduction through the tax office, take:

an agreement with a fitness center or other company for the provision of sports or health services

checks or other documents confirming payment